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The Facts About the National Flood Insurance Program

Release date: 
February 3, 2012
Release Number: 

Windsor, Conn. -- Federal Emergency Management Agency officials are clearing up some misconceptions about the National Flood Insurance Program (NFIP), which offers federally-backed flood insurance to property owners and renters in communities that participate in the program.

“The NFIP is a critical component to help homeowners and businesses recover from flood damage,” said FEMA Federal Coordinating Officer Stephen M. De Blasio, Sr. “The more that people know about it and utilize it, the easier it will be for them to rebuild their homes and communities.”

More than 20,000 communities participate in the NFIP nationwide, which is administered by FEMA but whose policies are sold through private insurance agents and companies throughout the country.

More than 25 percent of claims paid are from areas at medium or low risk of flooding. In these areas, NFIP flood insurance can be purchased for as little as $129 a year to insure a building and its contents, or $49 for contents only. Homes can be insured against flood damage for up to $250,000 and commercial buildings insured for up to $500,000.

Policies can be written to include contents coverage up to $100,000 for homes and $500,000 for business owners. Renters can insure their personal property for up to $100,000. The average homeowner pays about $600 a year for flood insurance, which pays claims even if a disaster is not declared by the president.

Since 1973, the NFIP has paid nearly $40 billion dollars in flood insurance claims, helping hundreds of thousands of families and businesses recover from floods.

To locate an agent who sells flood insurance in your area, call 888-379-9531 or visit

FEMA’s mission is to support our citizens and first responders to ensure that as a nation we work together to build, sustain, and improve our capability to prepare for, protect against, respond to, recover from, and mitigate all hazards.

Last Updated: 
July 16, 2012 - 18:46
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